NEWS:  NITI Aayog launched the “Future of India’s Semiconductor Industry,” à A 10-year roadmap to develop a USD 120–150 billion domestic semiconductor value chain by 2035.

ABOUT

• Focuses on deepening the ecosystem, aligning with India Semiconductor Mission (ISM) 2.0.
• Capture 10–13% of the global semiconductor market, increase chip self-sufficiency to 15–25% by 2030 and to 35–50% by 2035.

Five Pillars:

• National Frontier Semiconductor Research Programmeà Over 100 advanced semiconductor design IPs by 2035, and a National Design Hub.
• Policy & Investmentà Forming an autonomous National Semiconductor Nodal Agency and mandating strategic domestic procurement in defence, smart grids, telecom, and railways.
• Focusing on areas of structural advantage like advanced packaging, mature-node fabrication and compound semiconductors.
• Establishing specialised institutions like the National Fab Academy to develop a skilled workforce across the entire semiconductor value chain.
• Building alliances with global leaders (US, Japan, South Korea, EU) to secure critical minerals and integrate India into the semiconductor network.

SIGNIFICANCE

• India meets ~95% of semiconductor demand through imports, exposing critical domestic sectors to global supply-chain disruptions.
• India’s chip demand may reach USD 200 billion by 2035à raising annual semiconductor import bills to USD 240 billion if domestic capacity is not built.
• Semiconductors are vital for defence, telecoms, and AI, making local production a national security priority.
• Domestic chips support affordable 5G/6G, digital inclusion, precision agriculture, and remote healthcare for Viksit Bharat by 2047.